InnoEnergy pledges to mobilise €160b for cleantech as EU partnership comes to an end

InnoEnergy is dropping the EIT from its name as it’s no longer apart of the European Institute of Innovation and Technology. But the cleantech investment giant isn’t lowering its ambitions for financing clean industrial solutions.

As part of its rebrand, InnoEnergy has announced plans to mobilise up to €160b in the next five years to help Europe meet its climate targets. The aim is to "strengthen Europe’s appeal as a key destination for clean tech capital," the company says in a press release.

[split-article-here]

"Not a walk in the park"

To hit that ambitious target, InnoEnergy will tap multiple funding sources including venture capital, loans, grants and project financing.

"We know first-hand that the energy transition and industrial transformation are not a ‘walk in the park,'" says Diego Pavia, CEO of InnoEnergy. "Our growth strategy sends a clear signal: we are staying the course, tackling the complexities of industrialising clean technologies head on."

He says Europe has a unique single market, a strong industrial base, and the most ambitious and stable regulatory framework reaffirmed by the Clean Industrial Deal.

"With a maturing pipeline of clean industrial newcomers ready to scale and serve the domestic demand, growth financing is critical, and our ambitions directly address this opportunity."

Since its launch in 2010, InnoEnergy has helped more than 500 companies raise over €34b. It is currently invested in more than 160 startups and scale-ups, a portfolio that includes companies ranging from battery makers to seaweed cultivators.

New name, new business model

InnoEnergy has now undergone a significant transformation in its business model, becoming a purely commercial enterprise generating revenue primarily from exits from its own investments and capital from external investors.

As of this year, the company is no longer part of the EU's Knowledge Innovation Centre (KIC), which falls under the EIT, as the original agreement has expired. However, InnoEnergy and EIT will continue collaborating on specific projects going forward.

Its ownership structure now consists of 40 percent corporate shareholders, 40 percent academia and research centres, and 20 percent financial institutions.

Among the corporate owners are European energy and industrial giants such as OMV and Boryszew.

InnoEnergy says it now wants to speed up the development of new clean tech markets such as batteries and green hydrogen by launching additional strategic value chain initiatives.

"The energy transition is more than an environmental imperative – it’s the basis for a profound industrial, economic and societal transformation that requires bold action to ensure clean tech innovation is scaled at speed," Elena Bou, Innovation Director at InnoEnergy, says and continues:

"Through our new brand, we are signalling to investors, innovators, policymakers, and industrial leaders: we are here to continue leading, to partner, and to make the hard things happen."